The market has decided to move higher. What are the top six stocks for Friday’s rally? We’ll present them for you.
Today was the first trading day after various news, including the delaying of Pakistan International Airlines’ bid process, and the market sentiment shifted. The rotation that started yesterday after certain decisions brought out new stocks in focus.
The big development today is the emergence of the ARF Habib Limited group, which is taking a larger role and diversification in the business group. The group’s stocks are in focus across the board.
“In the short run, the market is a voting machine, but in the long run, it is a weighing machine.”
Benjamin Graham
In other trending news, Fauji Fertilizer Company joined as a part of the leading set, and ARF Habib Limited is now a leading player in the post-buyout phase. The Government of Pakistan defended yesterday’s board’s bid amount of 135 billion, explaining the distribution of proceeds between the government and PIAC.
The PIAC’s build-out is complete, and privatization processes are moving ahead in the next six months, with plans to privatize utilities stores and Passco.
Market outlook: since the rollover settlement week began, performance has been lackluster. Trading ranges are tightening with each passing day. Today the market traded within a range of about 946 points: high at 171,587, low at 170,641, closing down 244 points overall.
Sector performance: cement sector led the day’s decline, followed by investment banks, banking, and power. Food sectors, auto, etc., also felt pressure. Laggards (losers) include Cement and Lucky Cement; Hop Power showed negative sentiment today.
Winners (positive contributors) included the telecom sector, Pakistan Petroleum, FFC, Bank of Punjab, Pakistan State Oil, National Bank of Pakistan, Fatima Fertilizer, and Packages (S.A. Packages). Their individual contributions were modest compared to the overall declines.
ARF Habib Group emerged as a strong performer, and several of its stocks did well. The top stock of the day in that group was ARF Habib Limited, closing around 120.93 with an all-time high near 141. Jadan Corporation and Fatima Fertilizer also attracted attention.
Fatima Fertilizer closed around 151 after intraday gains; the stock had a strong outlook with potential to hit around 170 if momentum continues.
Other notable mentions: Tat Cement (20 paisa up), ARF Habib Corporation (mixed performance; some stocks were cheaper and attracted buyers), Reinsurance Company of Pakistan (up near 18.19, near multi-year highs, with potential up to around 24).
Market stats: about 1.53 billion shares traded, with a +26% day-on-day increase in volume; total market value around 664 billion versus 481 billion previously; 663 stocks traded, with 263 up, 172 up, and 46 unchanged (interpretation: more detail in original numbers).
Government support: The government defended the PIAC bid results; about 55 billion would go to PIAC from the 135 billion package; other funds to be paid by the government’s side.
Market outlook toward Friday: the week’s rollover settlement is nearly complete (over 90% of shares have rolled over). The market is ready to rally on Friday, given news flow is not negative, but systemic liquidity and participation will determine the upside. Institutional participation and other market participants’ behavior will guide Friday’s session.
On a potential upside, if 100x gains were realized, the index could rise toward around 1771/863 points (note: these are reference levels; the exact levels may be discussed in the video).
The speaker expects a positive close with about a 50-55% chance on Friday being positive, though the exact closing level remains uncertain.
The speaker signs off, promising another update on Friday.
